Unibail-Rodamco-Westfield to sell Paris office asset for €172.5M

Unibail-Rodamco-Westfield (ASX:URW) has agreed to sell the office component of the Gaîté-Montparnasse mixed-use complex in Paris to a joint venture between Norges Bank Investment Management and Swiss Life Group.

The transaction has a total acquisition cost of €172.5 million ($277.8 million), reflecting a 4% discount to the latest unaffected book value.

The office space, covering 12,500sqm and completed in 2022, is fully leased to Wojo, a coworking operator under the Accor group.

The development forms part of a larger redevelopment project that includes URW's Les Ateliers Gaîté shopping centre, a refurbished Pullman Paris Montparnasse hotel, residential units, and other community-oriented amenities.

"This transaction marks another step in our strategy to optimise our portfolio and reduce our debt levels," the company stated in a statement.

The sale is subject to standard conditions precedent and is anticipated to be finalised in the fourth quarter.

With this transaction, URW has now completed or secured €800,000 ($1.29 billion) in transactions in 2024, reducing the group’s proportionate net debt accordingly.

The group is also in ongoing discussions for an additional €600,00 ($966,132) of potential disposals.

URW operates 71 shopping centres across 12 countries, with a €50 billion ($80.5 billion) portfolio.

The company continues to engage in urban regeneration projects and sustainable development in the cities and communities where it operates.